American Airlines unveils upbeat current-quarter forecast

Investing.com --American Airlines has unveiled a forecast for current-quarter income that was above consensus projections at the midpoint despite posting a deeper-than-anticipated net loss in the first quarter.

In a statement, the carrier said that, based on current demand trends and current fuel price estimates, it expects to deliver second-quarter adjusted earnings per diluted share (EPS) of between $1.15 to $1.45. Bloomberg consensus expectations had called for a forecast of $1.16.

The firm also reiterated its full-year adjusted diluted EPS forecast of $2.25 to $3.25. Shares moved higher in premarket U.S. trading.

But American said that it was not "satisfied" with its results for the three months ended on March 31, saying that its performance during the period was dented by air traffic control challenges and "significant" weather events.

Quarterly total operating revenues rose by 3.1% to $12.57 billion, compared to analysts' estimates of $12.59 billion. Meanwhile, group-wide expenses increased by 6.9% to $12.56 billion, partly reflecting a steep uptick in fuel costs.

The adjusted net loss came in at $226 million, down from a profit of $33 million in the year-ago period. Analysts had seen the loss at $195.3 million.